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Cagamas prices US$249 million in bonds, sukuk
Social SRI sukuk, bonds for affordable housing assigned highest social benefit rating
The Asset 8 Aug 2022

The National Mortgage Corporation of Malaysia, Cagamas, has successfully priced 1.11 billion ringgit (US$249 million) worth of bonds and sukuk.

The issue is comprised of 25-million-ringgit one-year Islamic medium-term notes (IMTNs), 85-million-ringgit one-year conventional medium-term notes (CMTNs), 285-million-ringgit two-year Asean social SRI (sustainable and responsible investment) sukuk, 115-million-ringgit two-year IMTNs, 110-million-ringgit two-year Asean social bonds, 100-million-ringgit three-year IMTNs, and 390-million-ringgit three-year CMTNs.

Proceeds from the issuances will be used to fund the purchase of eligible assets from the financial system.

“The issuances, which include social SRI sukuk and social bonds, demonstrate our continued efforts to facilitate an emerging sustainable asset class and to promote the growth of a sustainable market ecosystem,” says Chung Chee Leong, company president and chief executive officer. “The company successfully priced its two-year social SRI sukuk and social bonds at 2bp lower than the two-year IMTNs, recording competitive spreads of 39bp to 45bp above the corresponding Malaysian government securities and investment issues for the overall issuances.”

As well, the social SRI sukuk and social bonds for affordable housing were assigned the highest social benefit rating of tier-1 by RAM Sustainability under the Cagamas’ sustainability bond/sukuk framework.

The conclusion of the above transactions brings the company’s year-to-date issuance amount to 10.05 billion ringgit. The issuance will be redeemed at their full nominal value upon maturity and are unsecured obligations of the company, ranking pari passu with all other existing unsecured obligations of the company.

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